JPMorgan Global Bond Opportunities Fund - A - J.P. Morgan Asset Management
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As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.

JPMORGAN GLOBAL BOND OPPORTUNITIES FUND

Broaden the borders of your bond portfolio.

The Global Bond Opportunities Fund provides flexible, high-conviction exposure across more than 15 fixed income sectors and 50 countries.

Read the latest Portfolio Manager insights   Fund Story   Commentary  

Key Points

Expertise
  • Highly experienced unconstrained portfolio managers Bob Michele, Nick Gartside and Iain Stealey leverage the proprietary research of a globally integrated team of over 280 investment professionals.
Portfolio
  • Expands investment horizons beyond traditional fixed income sectors, dynamically adjusting asset allocation and duration as market conditions evolve.
Success
  • Since inception, the Fund has provided top-decile performance and risk-adjusted returns.1
RISK/RETURN SINCE INCEPTION

Chart source: Morningstar as of 6/30/17. Shown for illustrative purposes only. Past performance is no guarantee of future results.

1Source: Morningstar as of 6/30/17. I Shares.Ranked: 1-yr. (43/322), 3-yrs. (30/298) 5-and 10-year periods n/a. Sharpe Ratio measures a manager’s excess return over the risk-free rate of return (normally the cash return), divided by the standard deviation; the Fund (I Shares) was ranked as follows: 1 yr. (24/313), 3-yrs. (45/305) and since inception (8/292). Five- and 10-years n/a. Inception date 9/4/12. Ratings reflect risk-adjusted performance. Different share classes may have different rankings. Yield refers to SEC yield.

Performance

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Commentary

As of June 30, 2017

Quarter in review
  • The JPMorgan Global Bond Opportunities Fund returned 1.22% (I Class Shares) compared to the Bloomberg Barclays Multiverse Index return of 2.64%, for the quarter ended June 30, 2017.
  • Exposure to high yield contributed to performance due to a combination of strong fundamentals, a good earnings season, continued low default rates and supportive technicals.
  • Investment-grade debt helped results as the sector posted strong performance after a strong earnings season. Technicals were favorable due to continued foreign investor demand.
  • Emerging market debt also contributed, partly due to the attractive carry of selective hard/local currency sovereign bonds.
  • The Fund's government rates exposure detracted as our core view of higher yields in developed markets was challenged, particularly in the beginning of the quarter.
  • Our emerging markets foreign exchange exposure detracted, mainly due to political volatility in Brazil and underperformance of the Russian ruble.
Looking ahead
  • We maintain our expectations that global growth momentum will continue and central bank accommodation will remain supportive for global risk assets in the near term.
  • We have a negative view on U.S. duration as we expect a more hawkish Fed and a rebound in U.S. growth to drive Treasury yields higher by year-end to the 2.5-3.0% range.
  • We are still constructive on spread sectors through investment-grade and high-yield corporates due to positive technicals and credit fundamentals. High-yield default rates are low and spreads could provide a modest cushion in an environment of rising rates.
  • We particularly believe that European bank capital (Alternative Tier 1) offers improving fundamentals and benefits from continued buying from the ECB.
  • We continue to be selective on emerging markets as we are constructive on the general improvement in these developing economies, but recognize significant dispersion across countries’ political and economic environments.

Fees and Minimums

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Portfolio

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Management

Fund Managers

Documents

Disclaimer

1Please refer to the prospectus for additional information about cut-off times.

Total return assumes reinvestment of income.

The Fund's adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation and extraordinary expenses) exceed 0.90% for A Shares, 1.30% for C Shares, 0.65% for I Shares and 0.50% for R6 Shares of the average daily net assets. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund's adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and expenses of the affiliated money market funds incurred by the Fund because of the Fund's investment in such money market funds. This waiver is in effect through 12/31/2017 for A Shares, 12/31/2017 for C Shares, 12/31/2017 for I Shares and 12/31/2017 for R6 Shares, at which time the adviser and/or its affiliates will determine whether to renew or revise it. The difference between net and gross fees includes all applicable fee waivers and expense reimbursements.

Mutual funds have fees that reduce their performance: indexes do not. You cannot invest directly in an index.

The Bloomberg Barclays Multiverse Index is a measure of the global fixed-income bond market that combines the Bloomberg Barclays Global Aggregate Index and the Bloomberg Barclays Global High Yield Index. The Bloomberg Barclays Global Aggregate Index measures grade debt from twenty-four different local currency markets. The Bloomberg Barclays Global High-Yield Index measures the global high-yield fixed income markets.

The performance of the Lipper Global Income Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. An individual cannot invest directly in an index.

Total return figures (for the fund and any index quoted) assume payment of fees and reinvestment of dividends (after the highest applicable foreign withholding tax) and distributions. Without fee waivers, fund returns would have been lower. Due to rounding, some values may not total 100%.

©2017, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.Rankings do not take sales loads into account.
The following risks could cause the fund to lose money or perform more poorly than other investments. For more complete risk information, see the prospectus.

Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops.

The Fund is aggressively managed and, therefore, is subject to greater fluctuation than an investment in a growth fund investing in proven growth equities. Net currency exposure is inclusive of the fund's derivative positions.

International investing bears greater risk due to social, economic, regulatory and political instability in countries in "emerging markets." This makes emerging market securities more volatile and less liquid developed market securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns.

Securities rated below investment grade are considered "high-yield," "non-investment grade," "below investment-grade," or "junk bonds." They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody's Investors Service. Although they can provide higher yields than higher rated securities, they can carry greater risk.

The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans.
Total return assumes reinvestment of income.

The top 10 holdings listed reflect only the Fund's long-term investments. Short-term investments are excluded. Holdings are subject to change. The holdings listed should not be considered recommendations to purchase or sell a particular security. Each individual security is calculated as a percentage of the aggregate market value of the securities held in the Fund and does not include the use of derivative positions, where applicable.

Duration: Measures price sensitivity of fixed income securities to interest rate changes.

Average Life: The length of time the principal of a debt issue is expected to be outstanding.